Marijuana stocks pared losses and Aphria (APHA) reversed sharply higher as the Canadian cannabis producer battled a short-seller that alleged acquisitions were rigged to surreptitiously enrich company insiders.

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Aphria said it named an independent panel to review its deal. But even as it tried to contain the fallout from an earlier short-seller report, one of the firms behind it published new allegations about the company later Thursday afternoon.

That firm, Hindenburg Research, said Thursday that it dug up “multiple irregularities” related to a company called Liberty Health Sciences, which the firm said was backed by Aprhia.

Earlier Thursday, Aphria, in a statement, said its board “reiterated its confidence” in the process leading up to the Latin American acquisitions. The statement said the board stood by Aphria’s Latin American operations as well.

“However,” Aphria said, “in the face of inaccurate and misleading accusations by certain short-sellers, whose sole interest is in profiting from a decline in the Company’s shares, it is undertaking a comprehensive review, led by a Special Committee of independent directors of these, and any other, allegations in the interest of protecting Aphria shareholders.”

Aphria said John M. Herhalt, an independent director, would chair the committee. Directors Shlomo Bibas and Tom Looney would also be on the committee. Aphria said each member was independent and joined the board after the Latin American acquisitions closed.

CEO Vic Neufeld added: “We are committed to protecting our shareholders and restoring market confidence by confirming all the facts through an independent process to rebut innuendo and deception.”

According to a BNN Bloomberg story on Wednesday, Neufeld said the company would soon provide a “line-by-line” response to the report. Quintessential Capital and Hindenburg Research released the